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Greedy iPhones Gobble The Flash |
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Written by Adam Gosling
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Thursday, 19 July 2007 |
Apple iPods and iPhones are
reportedly using a quarter of the worlds supply of Flash memory says
Taiwan memory researcher DRAMeXchange.
Apple iPods and iPhones are
reportedly using a quarter of the worlds supply of Flash memory says
Taiwan memory researcher DRAMeXchange.
The market research
company says Apple's position as a dominant customer for the world's
NAND memory means it can get a good deal on the silicon storage from
manufacturers - most notably Samsung which is the worlds largest maker
of the storage chips that can remember their contents even when the
power is switched off.
Not only is that driving the cost down for Apple, but it is ensuring it gets its supply first in a tight market.
DRAMeXchange says this is bad news for other makers of mobile devices
because there might not be enough to go around this quarter as
manufacturers are migrating to a new higher-density manufacturing
process.
Often when silicon foundries transition to a new
process in such a way, there are hiccups which affect yield reducing
supply. As this is reducing supply Apple is consuming a larger
proportion of the available Flash because its needs are met ahead of
other mobile phone and MP3 player manufacturers.
It is all
conspiring to drive the cost of Flash up, says the researcher, with
March prices up by as much as 7 per cent. The second major increase for
the year and likely to start flowing through to consumers soon.
"Production snags in the migration to more advanced NAND Flash
manufacturing processes has led to a lower-than-expected output,"
DRAMeXchange. "At the same time, with the iPhone and iPod set to
consume a significant amount of flash chips, the market has grown wary
that a shortage may occur. In the near term, prices are expected to
continue rising."
It could take more than half a year for all
this to pass and the bulk of Flash factories to start pumping out
enough volume to ease the price a little.
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